Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has made many investors gain interest in this new market. But most of them have no idea where to start. Its mystery also adds to the confusion many of them express. Here is a way for you to prepare to trade and sell Bitcoin and other type of cryptocurrency.
You need to first select a cryptocurrency exchange. There are many out there, each with its pros and cons. You need to analyze them by considering their fees and purchase options, supported coins, security, as well as liquidity. These are important factor when it comes to any exchange you wish to use. You need to land one with favorable fees applied. You will make the most money where they allow multiple coins. There is also the security issue. You should only go where they take security seriously, with things like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption in place.
You should then create a wallet. This shall enable the safe storage of your cryptocurrency. There is always a provisional wallet at your chosen exchange, but you should not leave your currency in there for too long. Storing it in your wallet is the only way you can be sure of security. You need to take care of that private key. That is what you use to transact safely. Any amount you have no use in the trade should go to the offline storage. You need to then keep that info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. You will find hardware wallets for such storage. You can find out more about them here.
This shall now be time to buy your first Bitcoin. You can do so after funding your wallet. There are several options to this. You can even buy Bitcoin using your credit card or bank account. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You shall thus be ready to trade and sell Bitcoin. You should have a plan on how you will do so, and the discipline to see it through. You may, for instance, avoid the temptation to put more than 5% of your total portfolio on a single investment. If the trade does not work out, you will have lost very little.
You need to only trade with an amount you can afford to lose. There is always risk in investment. This market has the ups and downs of other markets. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.